The Indian Cellular and Electronics Association (ICEA) is well on its way to achieving its target of exporting Rs 1 lakh crore worth of mobile phones by 2023. According to Pankaj Mohindroo, Chairman of ICEA, in the first nine months of the current financial year , the organization has already exported Rs 60,000 crore worth of mobile phones.
One of the key factors contributing to this success is the high percentage of phones that are ‘Made in India.’ The organization states that only one percent of mobile phones are imported, with the remaining 99 percent being manufactured domestically. However, a drawback of this is that it has led to a gray market worth Rs 10,000-12,000 crore for the top one percent of phones being imported.
To address this issue, ICEA has requested the removal of unstructured duties that have crept in on key inputs. Further, an additional outlay of Rs 10,000 crore under the Special Package for Component Manufacturer’s scheme will extend support to the component industry.
Vietnam is a fierce competitor in the electronics manufacturing industry, with exports of electronics valued at around $130 billion, and value addition of $30 billion. Vietnam also has an enviable structure of free trade agreements with almost the entire world.
Manish Sharma, Chairman of the Federation of Indian Chambers of Commerce and Industry (FICCI), also highlighted the importance of focusing on the electronics industry. He stated that the overall electronic industry is taking lessons from the developments in the mobile manufacturing industry, and that the approach in the next 3-5 years should ensure that all consumer electronics are assembled in India. He also stated that recent PLI (production-linked incentive) announcements have encouraged the assembly of consumer electronics in India.
Sharma also said there is a need for a larger vision to consider the global opportunity and that India needs a long-term vision for competitiveness. He cited that India consumes only eight million air-conditioners, while China consumes 50 million, highlighting the opportunity to unlock great demand in India.
In conclusion, the Indian electronic industry is making significant strides in the export of mobile phones and is on track to achieve its target of exporting one lakh crore worth of mobile phones by 2023. However, there is a need for thinking on a larger scale.
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